Kingston developer accused of sexual harassment

1of2The offices of Birchez Associates in Kingston. $262,000 in donations to Gov. Andrew CuomoOs campaign committee can be connected to businesses or individuals linked to the real estate developer and its principal, Steven L. Aaron. (Casey Seiler / Times Union)

2of2Sign at Birches at Schoharie on Thursday, Jan. 25, 2018 in Schoharie, N.Y. Birches at Schoharie is a low income housing project which is still in limbo over tax credits. (Lori Van Buren/Times Union)

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ALBANY — A Kingston-based developer stands accused of sexual harassment against several employees in a federal complaint that describes allegations of obscene sexual comments, unwelcome physical contact and more.

The civil complaint, filed Tuesday by the regional office of the federal Equal Employment Opportunity Commission, accuses Steven Aaron of Birchez Associates and Rondout Properties Management of routinely treating females employees in a "hostile, abusive, and demeaning manner," such as engaging in frequent temper tantrums punctuated by use of obscene epithets and Aaron throwing objects at them.

Some of the less offensive remarks attributed to Aaron in the complaint include the boast that he "knows how to satisfy a woman" and "likes the way they taste." The complaint also alleges he "repeatedly" put his hands down his pants and touched his genitals while speaking to female employees, and "has subjected a female employee to pornography on his cell phone on multiple occasions."

Three women are named as alleged victims in the complaint. All were hired in late 2018 and quit after only a few weeks due to allegedly "intolerable" conditions.

EEOC said in a news release that it had attempted to reach a pre-litigation settlement through its conciliation process. The agency said it will seek back pay, compensatory and punitive damages at trial.

"Employees have a right to work in an environment free of harassment," EEOC New York Regional Attorney Jeffrey Burstein said in a statement. "Sexual harassment is against the law; it is well past the day when employees can tolerate this type of conduct."

The complaint also accuses Stephen Fell, who serves as Birchez's chief financial officer, of doing nothing to address the women's complaints about Aaron's alleged behavior.

While most of his projects are located south of the Capital Region, Aaron was involved in the troubled development of the Birches at Schoharie, an affordable apartment complex for people 55 and older. The project faced considerable delays due in part to Aaron's financial disputes with a host of firms that worked on it. Bank of America, Aaron's lender on the development, ultimately foreclosed in September 2017 — a move Aaron is contesting in court.

Aaron has been a generous donor to Gov. Andrew M. Cuomo, giving at least $310,000 to the governor's campaigns between 2010 and 2017. The Times Union first reported in October 2015 about Aaron's habit of using a complex network of limited liability companies to make political donations.

Reached by phone Wednesday night, Aaron said his insurance company was in the process of assigning a lawyer to the EEOC case. He declined additional comment beyond saying, "We live in a #MeToo world."

The developer has, however, faced federal gender discrimination lawsuits long before the advent of the #MeToo movement.

A 1995 case resulted in a trial and a combined $1.4 million jury award for two women who worked at Aaron's now-shuttered building supplies company.

According to court documents, one of the women testified about Aaron's allegedly frequent use of misogynistic profanities at the office, and said Aaron physically threatened her. "I'll knock your teeth down your throat, and I'll kick your ass down those stairs," she recalled him saying.

Another gender discrimination lawsuit, from 2012, was settled for an undisclosed amount and stemmed from similar complaints of profane insults and abusive behavior reported by one of Aaron's former bookkeepers.

Aaron would regularly throw bottles and other objects, overturn desks, and on several occasions threatened to burn down the office building with all employees inside, her complaint stated.